Bezeq The Israel Telecommunication Stock Earnings Reports

Bezeq reported a strong Q1 driven by higher revenues, improved ARPUs and substantial free cash flow growth. Core group revenue rose 2.6% to >ILS 2 billion, comparable EBITDA and net profit increased, and free cash flow jumped materially (management cited +74% group / +84% fixed-line in explanations, partly due to a tax refund and working-capital timing). Fiber rollout reached 3.0 million homes passed with a 35% take-up (over 1.0 million active fiber subscribers), broadband retail ARPU grew to ILS 139, and retail broadband subscribers for the group increased. Pelephone showed strong postpaid and 5G subscriber growth (5G penetration ~61%, 5G Max at 184k; targeting 300k 5G Max by year-end) but experienced a roaming revenue hit related to the war. yes delivered its best quarter since Q1 2019 with revenues up ~7.5%, ARPU record of ILS 202, comp EBITDA growth and return to comp net profit; yes fiber subs reached 137k and IP migration is at 89%. Bezeq International grew business revenues (~+10%) with improved profitability. Net debt fell to ILS 4.6 billion (net-debt / comp-EBITDA ~1.4x) and the local rating agency reiterated AA / stable. Management announced shareholder returns: an ILS 549m cash dividend (80% of H2 2025 net profit) being paid and an ongoing ILS 150m buyback (about 50% executed so far). 2026 outlook and 2029 targets are unchanged. Management highlighted strategic initiatives: continued fiber & 5G rollouts, potential high-ROI subsea cable projects (aimed at positioning Israel as a digital corridor), and active engagement with the Ministry of Communications on removing structural separation to allow unified-group efficiencies. Overall, the company is emphasizing durable free-cash-flow growth, elevated ARPU trajectory, continued capital discipline, and potential new infrastructure-driven revenue streams, while noting limited net financial impact from regional security events.